The Association of Chartered Certified Accountants (ACCA) has called on UK politicians and regulators to take a “holistic” approach to business regulation reform. 

According to the ACCA, the cumulative regulatory burden is a significant challenge for businesses, particularly small enterprises.  

In its response to a government consultation on business red tape entitled ‘Unlocking business: Reform driven by you’, the organisation stated that calls for feedback focused on individual pieces of regulation, but do not capture the wider problem faced by companies.

Among its recommendations, the ACCA puts forward a “one-minus-two” policy, wherein with each new business law introduced, two unnecessary laws should be removed.  

The association also proposed regular reviews after implementation to determine whether regulations remain relevant and effective as circumstances change. 

ACCA UK head of Technical and Strategic Engagement Glenn Collins said: “ACCA recognises the vital role regulation plays in underpinning the UK’s reputation as a trusted place to do business. A strong, modern, institutional and legislative framework is key to ensuring the UK reaches its full potential. 

‘Regulation can build confidence through transparency and trust. However, when regulation is outdated or ineffective, the resulting costs, burdens and unintended consequences must be addressed.” 

The ACCA stated that there are regulatory areas that could be improved through modernisation or a review of their current effectiveness. 

It also pointed to the “complexity of the UK tax system” and urged for finalisation of long overdue legislation for establishing the Audit, Reporting and Governance Authority (ARGA).  

The ACCA’s other suggestions include enabling better data sharing between regulators, which would allow businesses to avoid repeatedly submitting identical information; developing AI legislation that sets an international standard; and reviewing 2018 data protection laws for potential improvements. 

ACCA UK Policy and Insights regional lead Joe Fitzsimons said: “ACCA members span every sector and size of organisation, from micro-businesses to global firms. As trusted advisors to business, they see first-hand how the cumulative burden of regulation erodes confidence, creates complexity and drives costly compliance errors.” 

The government now has a chance to address the persistent issue of inadequate regulation and establish a framework that fosters business growth, stated the ACCA. 

Earlier this month, the ACCA reported survey results indicating that eight out of ten finance professionals in the UK expect the recent Budget to “negatively impact” economic growth.

The survey collected responses from those working with or within small and medium-sized enterprises.